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To legally discharge debts in Chapter 7 bankruptcy, each debtor must
prove their income was below the state median income level. This
requirement was new in late 2005, as well as several other qualification
restrictions collectively referred to as the new means testing
requirement. If qualified to file Chapter 7, a presumption of law favors
discharge unless statutory exception or court order based on objection
prevents discharge.
If qualified, the court's order of discharge releases debtors from
further payment, liability and collection of certain debts listed within
bankruptcy schedules. Discharges are available in both Chapter 7 and
Chapter 13.
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